BBC Reports:
Reports say the workers, eight Nepalis and a man from Bihar state, were surrounded by gunmen who opened fire.
Earlier on Monday, at least one person was killed and 15 others wounded in a grenade attack on a bus stand in another part of the state.
Militants hurled three grenades at the main bus stand in the winter capital, Jammu, during the morning rush hour.
It is not yet clear who has carried out either of the attacks.
"These labourers were working at a construction site when an unknown number of gunmen surrounded the site and opened fire," police official SP Pani told the Associated Press.
Four other labourers were injured.
Senior Jammu police official Mukesh Singh said the Jammu attack took place when militants targeted a counter where passengers were buying tickets for buses to Katra, the base camp for a famous Hindu pilgrimage.
Five of the injured are in a critical condition, he said.
The state government has tightened security in the state following a rise in violence during the Hindu pilgrimage season.
At least four people have been killed and more than 35 injured in a series of grenade attacks on tourists in the state in the past few weeks.
Islamic militant groups have been fighting a long-running insurgency against Indian rule in Kashmir since 1989, a conflict which has so far cost more than 60,000 lives.
http://news.bbc.co.uk/1/hi/world/south_asia/5070458.stm